P9-4B The following represents selected information taken from a company’s aging schedule

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P9-4B The following represents selected information taken from a company’s aging schedule
to estimate uncollectible accounts receivable at year end.

Number of Days Outstanding
0–30 31–60 91–120 Over 120
Accounts receivable
% uncollectible
Estimated bad debts
$260,000 $100,000 $60,000
$30,000 $20,000
10% 15%

Instructions
(a) Calculate the total estimated bad debts based on the above information.

(b) Prepare the year-end adjusting journal entry to record the bad debts using the allowance
method and the aged uncollectible accounts receivable determined in (a). Assume the current
balance in the Allowance for Doubtful Accounts account is a $10,000 credit.

(c) Of the above accounts, $2,000 is determined to be specifically uncollectible. Prepare the journal
entry to write off the uncollectible accounts.

(d) The company subsequently collects $1,000 on a specific account that had previously been determined
to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account
and record the cash collection.